Paramount Skydance (NASDAQ:PSKY) has cleared a major regulatory hurdle in its proposed $110 billion acquisition of Warner Bros. Discovery, Inc. (NASDAQ:WBD) after the U.S. Department of Justice concluded that the transaction is unlikely to harm competition or consumers.
DOJ Clears Paramount-Warner Bros. Discovery Merger
On Friday, the Justice Department said it completed its review of the proposed merger and found no evidence suggesting the combination would substantially reduce competition in the media and entertainment industry.
“Based on the evidence received in its investigation,” the department found "that the transaction is not likely to result in harm to competition or American consumers.”
Paramount Says Deal Will Strengthen Competition
In a statement, Paramount welcomed the DOJ’s determination and argued that the merger would create a stronger competitor in an increasingly crowded entertainment landscape, CNBC reported.
“This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment,” a Paramount spokesperson said.
The company added that it remains focused on completing the transaction “as soon as possible” and delivering benefits to consumers, creators and the broader entertainment industry.
Paramount and WBD did not immediately respond to Benzinga's request for comments.
Regulatory Reviews Continue In Europe And California
Despite the federal clearance, the merger is not yet finalized.
California Attorney General Rob Bonta took to X and said the transaction remains under review by the California Department of Justice, leaving open the possibility of additional scrutiny at the state level.
Meanwhile, European regulators have begun reviewing the proposed acquisition and have set a July 14 deadline for their initial assessment. Paramount also disclosed this week that Australia’s competition regulator has approved the transaction.
Price Action: Shares of Paramount closed at $10.47 on Friday, down 0.19% for the day and rose 2.77% to $10.76 in after-hours trading, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Login to comment